Thursday, April 29, 2010

Race to the finish line!

April 26, 2010
Your Minnesota Real Estate Experts

It's down to the wire in the Twin Cities housing market for consumers to take advantage of the tax credits, which are set to expire Friday, April 30. With that looming deadline, sellers are far more active than buyers right now.

For the week ending April 17, there were 2,353 new listings added, a 21.9 percent increase vs. the same week last year. Over the last three months, there have been almost 4,000 more new listings than there were during the same period last year.

Pending sales are also growing but not at the same breakneck pace. The 1,103 purchase agreements for the most recent reporting week were just 1.8 percent higher than a year ago. A heavy increase in new listings compared with a marginal increase in pending sales has led to a growth in inventory; total active listings are up 3.0 percent over last year.

So what happens after the April 30 deadline? Since the tax credit deadline has shifted many buyers forward a few months in their normal cycle, we expect a slower summer selling season.